Regional Management Corp. · NYSE:RM
Regional Management — Q3 2017 Earnings Presentation
12 slides from Regional Management's earnings presentation, Nov 8, 2017
Slide 1: 3Q 2017 Earnings Call Presentation
3Q 2017 Earnings Call Presentation November 8, 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation, the related remarks, and the responses to various questions may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Regional Management Corp.’s expectations or beliefs concer
Slide 3: 3Q 17 Highlights – Strong Portfolio Growth and Hurricane Impact
3Q 17 Highlights – Strong Portfolio Growth and Hurricane Impact (dollars in millions) 3Q 17 3Q 16 Chg B/(W) % Chg B/(W) Total Finance Receivables $774.9 $696.1 $78.7 11.3% Core Finance Receivables 671.9 566.5 105.4 18.6% Total Revenue 69.2 62.5 6.7 10.8% Provision for Credit Losses 20.2 16.4 (3.7) (
Slide 4: Strategic Focus
Strategic Focus Nortridge Loan System (NLS) Implementation Conversion to NLS progressing Successfully built enhanced functionality (texting, imaging, and customer portal) Successfully converted Texas in October; 80% of all accounts on new system On schedule to complete conversion of all states by en
Slide 5: Net Income and Fully Diluted EPS
Net Income and Fully Diluted EPS $10.0 Net Income (1)$7.6 (2) $8.0$7.4 (3) $6.5$6.5$6.1 $5.9(4) $6.0$5.2$5.3 Millions $4.0 $2.0 $0.0 4Q 151Q 162Q 163Q 164Q 161Q 172Q 173Q 17 GAAP Net Income$7.4$5.2$5.9$6.5$6.5$7.6$6.1$5.3 Net Non- Operating Items$1.2N/AN/A N/A N/A $1.5($0.3)($1.5) $0.80Diluted Earni
Slide 6: Ending Net Finance Receivables
Ending Net Finance Receivables $ 800 Ending Net Receivables$775 $750$718 $727 $696 $695 $700 $646 $650$628 Millions$607 $600 $550 $500 4Q 151Q 162Q 163Q 164Q 161Q 172Q 173Q 17 YoY $82.3$81.5$73.2$94.5$89.3$87.6$81.0$78.7 Change15.1%15.5%12.8%15.7%14.2%14.4%12.5%11.3% Strong 3Q 17 growth of 11.3% ove
Slide 7: Product Category Trends
Product Category Trends in millions $ Chg I/(D) % Chg I/(D) Ending Net Receivables 4Q 151Q 162Q 163Q 164Q 161Q 172Q 173Q 17vs. 2Q 17 vs. 3Q 16vs. 2Q 17 vs. 3Q 16 Small Loans ( £ $2,500)$338$311$320$349$358$336$349$363$15$144.2% 4.0% Large Loans (> $2,500)$147$162$195$217$235$242$268$309 $41$9215.2%
Slide 8: Revenue Driven by Strong Year-Over-Year Portfolio Growth
Revenue Driven by Strong Year-Over-Year Portfolio Growth Revenue $73.0 $69.2 $68.0$65.8$65.3 $64.0 $62.5 $63.0 $56.7$56.7$57.3 Millions $58.0 $53.0 $48.0 $43.0 4Q 151Q 162Q 163Q 164Q 161Q 172Q 173Q 17 Interest & Fee IncomeInsurance IncomeOther Income Total Revenue4Q 151Q 162Q 163Q 164Q 161Q 172Q 173
Slide 9: Provision Up Due to Growth & Hurricane; NCL Rate Down
Provision Up Due to Growth & Hurricane; NCL Rate Down $24.0 Net Credit Losses & Provision for Credit Losses$24.0 $20.0$20.0 $16.0$16.0 Millions Millions in in $12.0$12.0 $19.4 $17.3$17.6 Losses $8.0$8.0 Provision Credit$15.0$13.4$13.5$14.8 $11.8 Net $4.0$4.0 Total $0.0$0.0 4Q 151Q 162Q 163Q 164Q 161
Slide 10: Seasonal Pattern of Delinquency
Seasonal Pattern of Delinquency 3Q 17 Delinquency: 1+ days past due is at 17.5%, which is 70 bps below 3Q 16 30+ days past due is at 6.8%, which is 30 bps below 3Q 16 30+ Delinquency Trend 7.2% 7.1% 7.4% $60.0 6.8% 6.8% 7.5% 6.2% 6.5% 6.5% $6.9 $6.2 6.0% $5.8 $5.5 $6.8 $5.4 $4.9 $8.2 $25.1 $6.6 $22.
Slide 11: G&A Expense Dollars and Ratios
G&A Expense Dollars and Ratios $50.0 Total G&A Expenses25.0% $40.018.6%19.3%18.9%20.0% 18.1%17.7%17.9%18.0% 16.3% $30.015.0%ANR of $28.6$29.8$29.5$30.5$31.5$31.6$33.8% $28.8 $20.010.0%Annualized $10.05.0% $0.00.0% 4Q 151Q 162Q 163Q 164Q 161Q 172Q 173Q 17 Sequential Ä9.0% 4.4% (0.9%)3.1% (5.3%)9.1% 0
Slide 12: Regional Management
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